Australian shares are off to another shaky start to the week, trading flat in the first session as investors mull a looming interest rate hike and tough economic conditions.
The S&P/ASX200 rose 0.7 points, or 0.01 per cent, to 8,731.9, as the broader All Ordinaries slipped 3.6 points, or 0.04 per cent, to 8,919.1
The ultimately balanced session pointed to a defensive rotation away from interest rate-sensitive sectors as traders mulled sticky inflation and a higher-for-longer interest rate outlook, Global X ETFs strategy analyst Joseph Marassa said.
"The domestic market continues to contend with a restrictive monetary policy environment," he said.
"Following three Reserve Bank rate hikes this year, uncertainty around the path of rates remains a headwind for both consumers and equity investors."
Markets now price a 91 per cent chance of a rate hike next week, while a stronger-than-expected employment print on Thursday would boost the case for further tightening, Mr Marassa said.
Mining stocks weighed heavily as the raw materials sector fell 0.7 per cent.
BHP and Rio Tinto fell 0.4 per cent and 0.8 per cent respectively, despite upward pressure on copper prices.
Gold stocks were broadly lower as the precious metals eased to $US4,347 ($A6,101) an ounce, while battery minerals and rare earths producers dipped sharply.
The energy sector gained 0.5 per cent as Santos, Viva and Ampol improved, while investors also bought up uranium stocks and sold down coal producers.
Brent crude eased during the session to $US102 a barrel, after data showed Middle East oil shipments had proved resilient despite recent strikes on Saudi energy infrastructure.
The heavyweight financials sector helped ballast weakness elsewhere, with broad-based buying as the segment hovered at the lower end of a range that has capped its value for almost a year.
ANZ was the best of the big four, up 0.9 per cent to $38.03.
Consumer-facing stocks traded lower, with staples losing 0.2 per cent and cyclicals down twice as much.
The traditionally defensive health care sector performed well as CSL continued its upward push, although Telix underperformed, shrinking by more than a 10th after flagging a $3.3 billion takeover of German isotope producer ITM.
In other company news, Perpetual Ltd tumbled 15 per cent after knocking back its latest takeover offer from Swedish private equity group EQT.
The Australian dollar is buying 71.28 US cents, down slightly from 71.27 US cents on Friday at 5pm.
ON THE ASX:
* The S&P/ASX200 rose 0.7 points, or 0.01 per cent, to 8,731.9
* The broader All Ordinaries fell 3.6 points, or 0.04 per cent, to 8,919.1
One Australian dollar trades for:
* 71.28 US cents, from 71.27 US cents at 5pm AEST on Friday
* 111.97 Japanese yen, from 111.86 Japanese yen
* 62.12 euro cents, from 62.07 euro cents
* 53.29 British pence, from 53.31 pence
* 124.63 NZ cents, from 124.51 NZ cents
